Karachi March 5 2022: Standard Chartered Bank (SCBPL) reduced its branch network in Pakistan to 41 compared to more than 100 branches in 2016.
In the same time banks ATM network is reduced to 173 at the end of December 2021 from 274 back in 2016.
However, in the same time Standard Chartered deposits grew to PKR 626 billion compared to PKR 365 billion in 2016, while banking advances double in the last five years to PKR 256 billion.
Despite reducing focus in Pakistan and uncertainties surrounding COVID-19, the Standard Chartered Bank delivered a resilient financial performance with a Profit before tax of PKR 24.8 billion compared to PKR 23.6 billion in 2020. Revenue was lower by PKR 3.5 billion primarily due to sharp reduction in interest rates in Q2’20 and market volatility which impacted gain on sale of securities. Administrative costs continue to be well managed through operational efficiencies and disciplined spending resulting in a decrease of 3% year on year. Moreover, strong recoveries and lower impairments as a result of prudent risk approach led to a net charge of PKR 0.5 billion compared to a net charge of PKR 4.9 billion in 2020.
All businesses have positive momentum with strong growth in underlying drivers. This is evident from pickup in net advances, which have grown by 31% since the start of this year. This was a result of targeted strategy to build profitable, high quality and sustainable portfolios. With a diversified product base, the Bank is well positioned to cater for the needs of its clients.
On the liabilities side, the Bank’s total deposits grew by PKR 70 billion (up 13%), whereas current and saving accounts grew by PKR 63 billion (up 12%) since the start of this year and comprise 92% of the deposit base.
During the year 2021, we streamlined our organisation by integrating our existing business units into two segments; Corporate, Commercial & Institutional Banking (CCIB); and Consumer, Private and Business Banking (CPBB). The creation of the CCIB segment, brings together Corporate & Institutional Banking and Commercial Banking, simplifies the way we work globally, keeping our distinct local client focus, with a less complex organisation on the ground and a single team to partner with our clients and stakeholders. Our Retail and Business Banking units are part of CPBB. These changes have enabled us to deliver our services more effectively to our clients, having a more global approach while serving our clients locally.
During 2021, the Bank contributed around PKR 16.9 billion to the national exchequer in lieu of direct income taxes, as an agent of Federal Board of Revenue (FBR) and on account of FED / Provincial Sales Taxes.
The Bank continues to invest in its digital capabilities and infrastructure to enhance our clients’ banking experience through the introduction of innovative solutions. We have made steady progress in further strengthening our control and compliance environment by focusing on our people, culture and systems. We are fully committed to sustained growth by consistently focusing on our clients and product suite along with a prudent approach to building the balance sheet while bringing the best in class services to our customers.
In 2021, the Bank primarily used Islamic financings modes of Musharakah, Diminishing Musharakah, Murabahah, Commodity Murabaha & Musawamah to meet the customers’ financial need in a Shariah compliant manner. At the close of the year ended December 31, 2021, the Bank had Islamic financing and investment/placement of Rs 83 billion. On the liability side, the Bank had total Islamic deposits of Rs 60.4 billion in Saving Accounts, Term Accounts, Current and other Accounts by end of the year.
Standard Chartered Bank (Pakistan) Limited was incorporated in Pakistan on 19 July 2006 and was granted approval for commencement of banking business by State Bank of Pakistan, with effect from 30 December 2006. The ultimate holding company of the Bank is Standard Chartered Plc., incorporated in England. The Bank is engaged in the banking business as defined in the Banking Companies Ordinance, 1962